Relevant Life Cover
What is a Relevant Life Cover?
Relevant life cover is a tax-efficient life insurance policy allowing the business to offer directors death-in-service benefits. The cover pays out a tax-free lump sum if the person insured dies (or is diagnosed with terminal illness).
This works as follows:
There is no minimum amount of cover but there can be limits on maximum amount of cover available depending on the circumstances and company financial situation.
Relevant life cover is the most tax efficient way, for the directors, to leave the nominated beneficiaries with a lump some without inheritance tax implications.
We will be more than happy to discuss this with you and recommend a suitable insurance provider.
Relevant life cover is a tax-efficient life insurance policy allowing the business to offer directors death-in-service benefits. The cover pays out a tax-free lump sum if the person insured dies (or is diagnosed with terminal illness).
This works as follows:
- Company insures the directors/employees ( this is only available to salaried directors and employees )
- Relevant life cover is written in trust
- If Employee dies or is diagnosed with terminal illness then the next of kin or beneficiaries make a claim
- Insurers pay the trustees responsible for trust
- Trustees pay the beneficiaries and since the policy is written in a trust no inheritance tax to pay
There is no minimum amount of cover but there can be limits on maximum amount of cover available depending on the circumstances and company financial situation.
Relevant life cover is the most tax efficient way, for the directors, to leave the nominated beneficiaries with a lump some without inheritance tax implications.
We will be more than happy to discuss this with you and recommend a suitable insurance provider.
